Sunday, April 12, 2009

Bankruptcy is protection, it lets a person or business, in financial trouble pay off debts by dividing assets among creditors. Certain types of bankruptcy let a person or business use income to pay off debts. When finished, debts are erased and hope is restored.

Bankruptcy also lets a person or business free themselves from financial obligations, even if the debts are not paid in full. Hearings take place in the United States Bankruptcy Courts .

The most common type of bankruptcy is Chapter 7; in this type a trustee collects unprotected property, sells it and distributes proceeds.

Under Chapters 11, 12, and 13 income is used to pay off debts. A trustee is appointed to supervise assets. Generally after a bankruptcy is filed creditors must stop collection activity.

About Me

Professionally trained and licensed attorney with over ten years of experience focused on helping people and businesses get out of debt, and restore their futures.
On this blog I'll answer questions and discuss helpful articles.
Email me with any questions at thedebtexperts@gmail.com.